If the Price Level Rises by 4 Percent in a Year

question 28

Multiple Choice

If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

• A) decrease by 6 percent.
• B) decrease by 4 percent.
• C) decrease by 2 percent.
• D) increase by 2 percent.

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Definitions:

Auditory Hallucinations

The perception of sound, often in the form of voices, in the absence of an external stimulus.

High School Teachers

Educators who instruct students in grades 9 through 12 in various subjects, preparing them for college, vocational training, or the workforce.

Prozac

A brand name for fluoxetine, a selective serotonin reuptake inhibitor (SSRI) used to treat depression, obsessive-compulsive disorder, and other conditions.

Meaningless

Lacking in purpose, significance, or value; conveying no clear message or understanding.